A regular meeting of the City
Council was held on Monday, December 3, 2001, at 7:00 p.m. in the Council
Chambers of City Hall.Mayor Black
presided.The Pledge of Allegiance to
the Flag was recited in unison.

Minutes

Approval of the minutes of the
November 19, 2001 regular meeting was offered by Council Member Wazbinski and
seconded by Council Member Currie.(Motion adopted.)

Recognition of Former Second Ward Councilman – John S. Coppage

Mayor Black offered
congratulations to former Council Member John S. Coppage upon his retirement
from the Midland City Council after twelve years of service.The following resolution was then offered by
Council Member Wazbinski and seconded by Council Member McKeag:

RESOLVED, that the Mayor is authorized to issue the
attached proclamation recognizing former Second Ward Councilman John S. Coppage
for his contributions to Midland City Council and to the Midland
community.(Motion adopted.)Mayor Black presented a proclamation plaque
to Mr. Coppage in honor of his service.

Comprehensive Annual
Financial Report Presentation

Robert Fisher, Director of Fiscal
Services, gave a brief review of the City of Midland’s 2001 Annual
Comprehensive Report.Bruce Berend,
Engagement Partner and Scott Janssen, Senior Manager, from the City’s audit
firm Plante and Moran, LLP, presented their financial report and management
letter to Council.The following
resolution was then offered by Council Member Currie and seconded by Council
Member McKeag:

RESOLVED, that the Comprehensive Annual Financial Report
of the City of Midland for the year ended June 30, 2001 is hereby received and
ordered filed for public examination.(Motion adopted.)

PUBLIC COMMENTS

William Fagley, 2700 Glendale,
commented on the $87 million that was in the fund balance at fiscal year
end.He questioned why taxpayers are
still paying into City government when the fund balance is high.Robert Fisher, Director of Fiscal Services,
indicated that money collected for the tax appeal reserve is placed in the
general fund and that cash reserves set aside for senior housing maintenance and
equipment revolving fund are also included in the fund balance.

West Main Street Historic District Commission – Resignation of Keith Abbe

Jack Duso, Assistant City
Manager, presented information on the resignation of Keith Abbe from the West
Main Street Historic District Commission.The following resolution was then offered by Council Member Currie and
seconded by Council Member McKeag:

RESOLVED, that the resignation of Keith Abbe as a member
of the West Main Street Historic District Commission is hereby accepted and the
Administration is directed to convey the Council’s appreciation to Mr. Abbe for
his service on this important Commission.(Motion adopted.)Council
directed staff to advertise the opening on the West Main Street Historic
District Commission.

West Main Street Historic
District Commission - Appointment

The following resolution was
offered by Council Member Currie and seconded by Council Member Griggs:

RESOLVED, that Donna Gross is hereby appointed as a
Citizen at Large member to the West Main Street Historic District Commission to
fill an unexpired term expiring June 30, 2002, to be effective
immediately.(Motion adopted.)

The following resolution was
offered by Council Member Wazbinski and seconded by Council Member Currie:

RESOLVED, that the resignation of Larry Burks as a member
of the Saginaw-Midland Municipal Water Supply Corporation Board effective the
end of December is hereby accepted and the Administration is directed to convey
the Council’s appreciation to Mr. Burks for his service on this important
Board.(Motion adopted.)

New Class “C” Liquor License Report

Jack Duso, Assistant City
Manager, presented a report on the new Class C liquor license available for a
business within the City limits.Council requested that staff look into the availability of licenses from
both Midland County and Bay County.Council also requested that staff compile a listing of policies and
recommendations.

2001 LOCC Determinations

The following resolution was
offered by Council Member Currie and seconded by Council Member McKeag:

WHEREAS, in accord with Article
IX of Chapter 2 of the Code of Ordinances, the Local Officers’ Compensation
Commission has duly met and approved its 2001 Local Officers’ Compensation
Commission Determinations; and

WHEREAS, said determinations were officially filed by the
Chairman of the Local Officers’ Compensation Commission in the Office of the
City Clerk, 333 W. Ellsworth, Midland, Michigan on November 16, 2001; and

WHEREAS, in accord with Article
IX of Chapter 2 of the Code of Ordinances, the determinations made by the Local
Officers’ Compensation Commission shall be effective on December 16, 2001
unless said determinations are rejected by a 4/5 vote of the City Council; and

WHEREAS, copies of the 2001
Determinations of the Local Officers’ Compensation Commission were on file in
the Governmental Corner at the Grace A. Dow Memorial Library and the Midland
City Clerk’s Office for public review; and

WHEREAS, the City Council, on
December 3, 2001, heard public comments regarding the Local Officers’
Compensation Commissions’ 2001 Determinations; now therefore

RESOLVED, after hearing public
comments the Midland City Council hereby rejects the 2001 Determinations of the
Local Officers Compensation Commission.(Motion denied.Yeas:GriggsNays:Black, Currie, McKeag,
Wazbinski)

The following resolution was
offered by Council Member Wazbinski and seconded by Council Member Currie:

WHEREAS, in accord with Chapter
2, Article II, Section 2-18 of the Code of Ordinances, proposals have been
solicited and received for the City of Midland Zoning Ordinance and Subdivision
Ordinance modernization project; and

RESOLVED, that the proposed
Professional Services Agreement with McKenna Associates be accepted in the
amount of $65,000.00; and

RESOLVED FURTHER, that the Mayor
and City Clerk are authorized to execute said Agreement on behalf of the
City.(Motion adopted.)

Petitions for Public Improvement –Water Main on Fisher Road

The following resolution was
offered by Council Member McKeag and seconded by Council Member Currie:

RESOLVED, that
the attached petition received from Nick Rapanos for the installation of a
water main on Fisher Road and along the south line of Section 24 to the end of
Centennial Drive, is hereby received and referred to the City Engineering
Department for consideration of inclusion in the 2002 Construction Program.(Motion adopted.)

Petitions for Public Improvement –Water Main on Jefferson Avenue

The following resolution was
offered by Council Member McKeag and seconded by Council Member Currie:

RESOLVED, that
the attached petition received from John A. Rapanos for the installation of a
water main on Jefferson Avenue from Joseph Drive to 130 feet north of the west
¼ corner of Section 34, is hereby received and referred to the City Engineering
Department for consideration of inclusion in the 2002 Construction Program.(Motion adopted.)

Petitions for Public Improvement – Water Main on Lee Street

The following resolution was
offered by Council Member McKeag and seconded by Council Member Currie:

RESOLVED, that
the attached petition received from Prodo, Inc. for the installation of a water
main on Lee Street from Quincy Drive to Clay Street, is hereby received and
referred to the City Engineering Department for consideration of inclusion in
the 2002 Construction Program.(Motion
adopted.)

Petitions for Public Improvement –Water Main on Perrine Road

The following resolution was
offered by Council Member McKeag and seconded by Council Member Currie:

RESOLVED, that
the attached petition received from Earl D. Bennett Construction, Inc. for the
installation of a water main on Perrine Road from the end of the existing water
main to the north line of Section 31, is hereby received and referred to the
City Engineering Department for consideration of inclusion in the 2002
Construction Program.(Motion adopted.)

Petitions for Public Improvement – Sanitary Sewer on Countryside Drive

The following resolution was
offered by Council Member McKeag and seconded by Council Member Currie:

RESOLVED, that
the attached petitions received from Prodo, Inc., Schroeder Homes, Matt and
Cheryl Musinski and Clifford and Catherine Hamilton for the installation of a
sanitary sewer on Countryside Drive from Dublin Avenue to Green Road and on
Green Road from Countryside Drive to 384 feet south, is hereby received and
referred to the City Engineering Department for consideration of inclusion in
the 2002 Construction Program.(Motion
adopted.)

Petitions for Public Improvement – Sanitary Sewer on Jefferson Avenue

The following resolution was
offered by Council Member McKeag and seconded by Council Member Currie:

RESOLVED, that
the attached petition received from John A. Rapanos for the installation of a
sanitary sewer on Jefferson Avenue from Joseph Drive to 130 feet north of the
west ¼ corner of Section 34, is hereby received and referred to the City
Engineering Department for consideration of inclusion in the 2002 Construction
Program.(Motion adopted.)

Petitions for Public Improvement – Sanitary Sewer on Lee Street

The following resolution was
offered by Council Member McKeag and seconded by Council Member Currie:

RESOLVED, that
the attached petition received from Prodo, Inc. for the installation of a
sanitary sewer on Lee Street from Quincy Drive to Clay Street, is hereby
received and referred to the City Engineering Department for consideration of
inclusion in the 2002 Construction Program.(Motion adopted.)

Petitions for Public Improvement – Sanitary Sewer to Mapleton Area

The following resolution was
offered by Council Member McKeag and seconded by Council Member Currie:

RESOLVED, that
the attached petition received from John A. Rapanos for the installation of
sanitary sewers to serve the Mapleton Area, is hereby received and referred to
the City Engineering Department for consideration of inclusion in the 2002
Construction Program.(Motion adopted.)

Petitions for Public Improvement – Sanitary Sewer on Perrine Road

The following resolution was
offered by Council Member McKeag and seconded by Council Member Currie:

RESOLVED, that
the attached petition received from Earl D. Bennett Construction, Inc. for the installation
of a sanitary sewer on Perrine Road from the end of the existing sanitary sewer
to the north line of Section 31, is hereby received and referred to the City
Engineering Department for consideration of inclusion in the 2002 Construction
Program.(Motion adopted.)

Petitions for Public Improvement – Street Improvement on Lee Street

The following resolution was
offered by Council Member McKeag and seconded by Council Member Currie:

RESOLVED, that
the attached petition received from Prodo, Inc. for the street improvement on
Lee Street from Quincy Drive to Clay Street, is hereby received and referred to
the City Engineering Department for consideration of inclusion in the 2002
Construction Program.(Motion adopted.)

The following resolution was
offered by Council Member McKeag and seconded by Council Member Currie:

RESOLVED, that a
request from Councilman Marty Wazbinski for the paving of Plymouth Park Drive,
is hereby received and referred to the City Engineering Department for
consideration of inclusion in the 2002 Construction Program.(Motion adopted.)

Petitions for Public Improvement – Street Widening of Dilloway Drive

The following resolution was
offered by Council Member McKeag and seconded by Council Member Currie:

RESOLVED, that a
request from Councilman Marty Wazbinski for the widening of Dilloway Drive east
of Eastman Avenue, is hereby received and referred to the City Engineering
Department for consideration of inclusion in the 2002 Construction
Program.(Motion adopted.)

The following resolution was
offered by Council Member McKeag and seconded by Council Member Currie:

RESOLVED, that the attached petition received from William R. Trull for
the installation of street lights on Eastman Avenue from Saginaw Road to
Commerce Drive and on Jefferson Avenue from Wackerly Street to Joe Mann
Boulevard and on Joe Mann Boulevard from Eastman Avenue to Jefferson Avenue, is
hereby received and referred to the City Engineering Department for
consideration of inclusion in the 2002 Construction Program.(Motion adopted.)

Easement Agreement – First United Methodist Church for Storm Drain Pipe

The following resolution was
offered by Council Member Wazbinski and seconded by Council Member Currie:

WHEREAS, the First United
Methodist Church desires to install a storm sewer drain line under Main Street
east of Fitzhugh Street by boring the pipe under the roadway and it will outlet
into the storm sewer system behind the Midland County Courthouse building; and

WHEREAS, the City of Midland must
grant an easement to the First United Methodist Church to occupy the public
road right of way in the location of the proposed storm sewer pipe; now
therefore

RESOLVED, that the Easement Agreement from the City of
Midland to the First United Methodist Church is hereby accepted and that the
Mayor and City Clerk are authorized to sign said agreement on behalf of the
City of Midland and that the document shall be recorded at the Midland County
Register of Deeds.(Motion adopted.)

Flood Insurance Rate Maps

The following resolution was
offered by Council Member Wazbinski and seconded by Council Member Currie:

WHEREAS, the City of Midland desires to participate in the
National Flood Insurance Program and comply with all applicable statutory and
regulatory requirements for the purpose of significantly reducing hazards to
persons, property damage, and public expenditures, and to provide for the
availability of flood insurance and federal funds or loans; now therefore

RESOLVED, that:

1.For purposes of this resolution, the following definitions shall
apply:

“Flood Hazard Area” is land,
which, on the basis of available flood plain information, is subject to a one
percent or greater chance of flooding in any given year.

“Flood
Insurance Rate Map (FIRM)” is an official map of a community on which the
Federal Emergency Management Agency has delineated both the areas of special
flood hazards and the risk premium zones applicable to the community.

“Flood Insurance Study” is the official report
provided by the Federal Insurance Administration.The report contains flood profiles, the water surface elevation
of the base flood, and may include a flood boundary-floodway map.

“Substantial Improvement” means any repair, reconstruction, or
improvement of a structure, the cost of which equals or exceeds fifty (50)
percent of the market value of the structure either (1) before the improvement
or repair is started, or (2) if the structure has been damaged and is being
restored, before the damage occurred.For the purposes of this definition, “substantial improvement” is considered
to occur when the first alteration of any wall, ceiling, floor, or other
structural part of the building commences, whether or not that alteration
affects the external dimensions of the structures.The term does not, however, include either (1) any project for
improvement of a structure to comply with existing State or local health,
sanitary or safety code specifications which are solely necessary to assure
safe living conditions, or (2) any alteration of a structure listed on the
National Register of Historic Places
or a State Inventory of Historic Places.

2.The
building inspector shall obtain, review, and reasonably utilize flood elevation
data available from Federal, State, or other sources pending receipt of data
from the Federal Emergency Management Agency.The most recent flood elevation data received from the Federal Emergency
Management Agency shall take precedence over data from other sources.

3.The Flood Insurance Rate
Maps of the City of Midland, Michigan, dated December 5, 1995, and as reversed
or updated shall be the official map for determinations and regulation pursuant
to this Resolution.

4.The building inspector
shall insure that all necessary permits have been issued, including a flood
plain permit, approval, or letter of no authority from the Michigan Department
of Environmental Quality under Part 31, Floodplain Regulatory Authority, found
in Water Resources Protection of the Natural Resources and Environmental
Protection Act, 1994, PA 451, as amended.

5.The building inspector
shall review all permit applications to determine whether the proposed building
will be reasonably safe from flooding.Where it is determined that the building will be located in a flood
hazard area, the building inspector shall implement the appropriate portions of
the Michigan Residential Code, specifically Section R327, the appropriate
portions of the Michigan Building Code, specifically Section 1612, and all
referenced codes and standards.

6.The
building inspector shall maintain a record of new structures or substantial
improvements erected in the flood hazard area, indicating the actual elevation
of the lowest structural member required to be elevated, or as an alternative,
in nonresidential structures, the elevation to which the structure has been
floodproofed; and

RESOLVED FURTHER, that the City Council hereby affirms that
the Flood Insurance Rate Maps dated December 5, 1995, are the official flood
plain maps for the City of Midland.(Motion adopted.)

Madison Street and Burch Street Vacation Request

The following resolution was
offered by Council Member Wazbinski and seconded by Council Member Currie:

RESOLVED, that a request to
vacate all of Madison Street and Burch Street north of Soper Street be referred
to the City Planning Commission, City Engineer, Utilities Director, and the
Director of Public Services for review and recommendation to the City
Council.(Motion adopted.)

The following resolution was
offered by Council Member Wazbinski and seconded by Council Member Currie:

WHEREAS, on February 5, 1996 the City of Midland and the
Michigan Department of Transportation (MDOT) entered into a contract for the
construction of a full interchange at US-10 and Bay City Road in which MDOT
agreed to pay for the construction costs, and the City agreed to pay for the
preliminary engineering and reimburse MDOT for the acquisition of necessary
right of way; and

WHEREAS, the final obligation in
this project is to compensate the Webb family and Anthony Dizon for relocation
expenses associated with a commercial structure and residential structures as
part of the right of way acquisition; and

WHEREAS, a settlement for said
relocation expenses has been negotiated by the Transportation Division of the
Department of Attorney General in the amount of $80,000 subject to the approval
of the City Council of the City of Midland; now therefore

RESOLVED, that the City Council
hereby approves the settlement offer and authorizes the Mayor to execute a
Consent Agreement for relocation assistance benefits subject to review and
approval by the City Attorney; and

RESOLVED FURTHER, that in compliance with the City of
Midland’s contract with MDOT for the construction of a full interchange at
US-10 and Bay City Road, the Director of Fiscal Services is hereby authorized
and directed to pay $80,000 in compliance with the Consent Agreement.(Motion adopted.)

Robert Fisher, Director of Fiscal
Services, presented information on the issuance of bonds to finance
construction of a 43.5 million gallon storm water retention basin at the
Wastewater Treatment Plant.The
following resolution was then offered by Council Member Currie and seconded by
Council Member Wazbinski:

WHEREAS,
pursuant to the provisions of Act 451, Public Acts of Michigan, 1994 (“Act
451”), when the Michigan Department of Environmental Quality (“MDEQ”) has
ordered the installation, construction, alteration, improvement or operation of
a sewage system, solid waste facility or waterworks system in a municipality,
and the plans therefor have been prepared and approved by the state department
or commission having the authority by law to grant the approval, the
legislative body of the municipality may issue and sell the necessary bonds for
the construction, installation, alteration, operation or improvement thereof,
including the treatment works and such other facilities as may be so ordered or
set forth in the order as being necessary to provide for the effective operation
of the system; and

WHEREAS,
the City of Midland(the “Issuer”),
pursuant to Administrative Consent Order ACO-SW99-14, entered September 1,
1999, as now in force or hereafter amended (the “Order”), is required to make
certain modifications to its sanitary sewer collection system, which
improvements are necessary in order for the City to meet its obligations under
relevant federal and state law; and

WHEREAS,
the Issuer desires to comply with the Order and to make the improvements
required thereby (the “Project”); and

WHEREAS,
the Project is necessary to preserve and protect the public health and to meet
an urgent and imperative need for sewer facilities within the service area of
the City; and

WHEREAS,
the Project qualifies for the State of Michigan Revolving Loan Fund financing
program being administered by the Michigan Municipal Bond Authority (“MMBA”)
and MDEQ, whereby the bonds of the Issuer are sold to the MMBA and bear
interest at a fixed rate of interest per annum; and

WHEREAS, in
pursuance of the authority granted by Act 451 the Issuer desires to issue and
sell the necessary bonds to the MMBA to pay part of the cost of the Project;
and

WHEREAS, it is the determination of
the City Council that at this time limited tax general obligation bonds in the
principal amount of not to exceed Five Million One Hundred Thirty Thousand
Dollars ($5,130,000) should be issued to paypart of the costs of the Project; and

WHEREAS, Chapter III, Section 12(d) of
Act 202, Public Acts of Michigan, 1943, as amended (“Act 202”), permits a
municipality to authorize, within limitations which shall be contained in the
authorizing resolution of the governing body, its officers to sell and deliver
and receive payment for obligations, and to approve interest rates or methods
for fixing interest rates, prices, discounts, maturities, principal amounts,
denominations, dates of issuance, interest payment dates, redemption rights,
place of delivery and payment, and other matters and procedures necessary to
complete an authorized transaction.

NOW, THEREFORE, BE IT RESOLVED THAT:

1.Bonds of
the Issuer designated GENERAL OBLIGATION LIMITED TAX SEWER SYSTEM IMPROVEMENT
BONDS, SERIES 2001 (the “Bonds”) are authorized to be issued in the aggregate
principal sum of not to exceed Five Million One Hundred Thirty Thousand Dollars
($5,130,000) for the purpose of paying part of the cost of the Project,
including the cost incidental to the issuance, sale and delivery of the Bonds
and, if necessary capitalized interest expense.The Bonds shall be in the form of a single fully-registered,
nonconvertible bond of the denomination of the full principal amount thereof,
dated as of the date of delivery of the Bond, payable in principal installments
serially on April 1 of each year beginning April 1, 2003, and as
set forth on Schedule A to the Bond form contained in this Resolution, as
finally determined by the City Manager at the time of sale of the Bonds and
approved by the MMBA and MDEQ.Final
determination of the Principal Amount and the payment dates and amounts of
principal installments of the Bonds shall be evidenced by execution of a
Purchase Contract (the “Purchase Contract”) between the Issuer and the MMBA
providing for sale of the Bonds, and the City Manager or the City Clerk (the
“Authorized Officers”) are authorized and directed to execute and deliver the
Purchase Contract when it is in final form and to make the determinations set
forth above.

The Bonds or principal installments thereof will be
subject to prepayment prior to maturity in the manner and at the times as
provided in the form of Bond contained in this Resolution or as may be approved
by the Authorized Officers at the time of sale of the Bonds or by the MMBA at
the time of prepayment.

The Bonds shall bear interest at a rate of two and one-half
percent (2.5%) per annum on the par value thereof or at such lower rate of
interest as evidenced by execution of the Purchase Contract, and either of or
both of the Authorized Officers shall deliver the Bond in accordance with the
delivery instructions of the MMBA.

The Bond principal amount is expected to be drawn down by
the Issuer periodically, and interest on principal amount shall accrue from the
date such principal amount is drawn down by the Issuer. The Bond shall not be
convertible or exchangeable into more than one fully‑registered
bond.Principal of and interest on the
Bond shall be payable as provided in the Bond form in this Resolution.

The City Treasurer shall record on the registration books
payment by the Issuer of each installment of principal or interest or both when
made and the canceled checks or other records evidencing such payments shall be
returned to and retained by the City Treasurer.

Upon payment by the Issuer of all outstanding principal of
and interest on the Bond, the MMBA shall deliver the Bond to the Issuer for
cancellation.

2.The Bonds
of this issue shall be executed in the name of the Issuer with the manual or
facsimile signatures of the Mayor and Clerk of the Issuer and shall have the
seal of the Issuer, or a facsimile thereof, printed or impressed on the
Bonds.If the Bonds shall bear
facsimile signatures, no Bond shall be valid until authenticated by an
authorized officer or representative of the Transfer Agent.

3.The City
Treasurer is authorized and directed to open a separate depositary account with
a bank or trust company designated by the City Treasurer, to be designated
GENERAL OBLIGATION LIMITED TAX SEWER SYSTEM IMPROVEMENT BONDS, SERIES 2001 DEBT
RETIREMENT FUND (the “Debt Retirement Fund”), the moneys to be deposited into
the Debt Retirement Fund to be specifically earmarked and used solely for the
purpose of paying principal of and interest on the Bonds as they mature.Bond proceeds in amounts sufficient to pay
all or part of any interest due on the Bonds as may be determined by MDEQ shall
be deposited in the Debt Retirement Fund.All proceeds from taxes levied for the Debt Retirement Fund shall be
deposited into the Debt Retirement Fund as collected.Commencing with the fiscal year ending June 30, 2002, the Issuer
shall provide in its budget each year until the Bonds are paid, in the manner
provided by the provisions of Act 202, an amount sufficient to promptly pay,
when due, the principal of and interest on the Bonds becoming due prior to the
next annual tax levy.The limited tax
full faith, credit and resources of the Issuer are hereby pledged for the
prompt payment of the principal of and interest on the Bonds as they become
due, which pledge shall include the Issuer’s obligation to pay from its general
funds as a first budget obligation said principal and interest and, if
necessary, to levy ad valorem taxes on all taxable property in the Issuer,
within applicable constitutional, statutory and charter tax rate limitations.

4.The City
Treasurer is authorized and directed to open a separate depositary account with
a bank or trust company designated by the City Treasurer, to be designated
GENERAL OBLIGATION LIMITED TAX SEWER SYSTEM IMPROVEMENT BOND, SERIES 2001
CONSTRUCTION FUND (the “Construction Fund”) and deposit into said Construction
Fund the proceeds of the Bonds less capitalized interest, if any.The moneys in the Construction Fund shall be
used solely to pay the costs of the Project and the costs of issuance of the
Bonds.

5.The Bonds
shall be in substantially the following form, subject to such corrections or
modifications which may be required by the MMBA and approved by bond counsel:

UNITED STATES OF AMERICA

STATE OF MICHIGAN

COUNTIES OF MIDLAND AND BAY

CITY OF MIDLAND

GENERAL OBLIGATION LIMITED TAX SEWER SYSTEM IMPROVEMENT BONDS

SERIES 2001

REGISTERED OWNER:Michigan
Municipal Bond Authority

PRINCIPAL AMOUNT:____________________________
Dollars ($__________)

DATE OF ORIGINAL ISSUE:_______________, 2001

The CITY OF MIDLAND, Counties of Midland and Bay, State of Michigan (the
“City”), for value received, hereby promises to pay to the Michigan Municipal
Bond Authority (the “Authority”), or registered assigns, the Principal Amount
shown above, or such portion thereof as shall have been advanced to the City
pursuant to a Purchase Contract between the City and the Authority and a
Supplemental Agreement by and among the City, the Authority and the State of
Michigan acting through the Department of Environmental Quality, in lawful
money of the United States of America, unless prepaid prior thereto as
hereinafter provided.

During the time the Principal Amount is being drawn down by the City
under this bond, the Authority will periodically provide to the City a
statement showing the amount of principal that has been advanced and the date
of each advance, which statement shall constitute prima facie evidence of the
reported information; provided that no failure on the part of the Authority to
provide such a statement or to reflect a disbursement or the correct amount of
a disbursement shall relieve the City of its obligation to repay the
outstanding Principal Amount actually advanced, all accrued interest thereon,
and any other amount payable with respect thereto in accordance with the terms
of this bond.

The Principal Amount shall be payable on the dates and in the annual
principal installment amounts set forth in Schedule A attached hereto and
made a part hereof, as such Schedule may be adjusted if less than $5,130,000 is
disbursed to the City or if a portion of the Principal Amount is prepaid as
provided below, with interest on said principal installments from the date each
said installment is delivered to the holder hereof until paid at the rate of
two and_______ percent (2.__%) per
annum.Interest is first payable on
April 1, 2002, and semiannually thereafter on the first day of
October and April of each year, as identified in the Order of Approval of the
Department of Environmental Quality.

Notwithstanding any other provision of this bond, as long as the
Authority is the owner of this bond, (a) this bond is payable as to principal,
premium, if any, and interest at Bank One Trust Company, National
Association,or at such other place as
shall be designated in writing to the City by the Authority (the “Authority’s
Depository”); (b) the City agrees that it will deposit with the
Authority’s Depository payments of the principal of, premium, if any, and
interest on this bond in immediately available funds at least five business
days prior to the date on which any such payment is due whether by maturity,
redemption or otherwise; and (c) written notice of any redemption of this bond
shall be given by the City and received by the Authority’s Depository at least
40 days prior to the date on which such redemption is to be made.

Additional
Interest

In the event of a default in the payment of principal or interest hereon
when due, whether at maturity, by redemption or otherwise, the amount of such
default shall bear interest (the “additional interest”) at a rate equal to the
rate of interest which is two percent above the Authority’s cost of providing
funds (as determined by the Authority) to make payment on the bonds of the
Authority issued to provide funds to purchase this bond but in no event in
excess of the maximum rate of interest permitted by law.The additional interest shall continue to
accrue until the Authority has been fully reimbursed for all costs incurred by
the Authority (as determined by the Authority) as a consequence of the City’s
default.Such additional interest shall
be payable on the interest payment date following demand of the Authority.In the event that (for reasons other than
the default in the payment of any municipal obligation purchased by the Authority)
the investment of amounts in the reserve account established by the Authority
for the bonds of the Authority issued to provide funds to purchase this bond
fails to provide sufficient available funds (together with any other funds
which may be made available for such purpose) to pay the interest on
outstanding bonds of the Authority issued to fund such account, the City shall
and hereby agrees to pay on demand only the City’s pro rata share (as
determined by the Authority) of such deficiency as additional interest on this
bond.

This bond is the single, fully-registered, non-convertible bond in the
principal sum of $5,130,000, issued for the purpose of paying the cost of
certain modifications to the sanitary sewer system of the Issuer and paying
costs incidental to the issuance of the bonds, in pursuance of the authority
granted under Act 451, Public Acts of Michigan, 1994, as amended duly
adopted by the City Council of the Issuer, and pursuant to an administrative
consent order entered against the City by the Michigan Department of Environmental
Quality, as now in force or hereafter amended.

Bonds may be subject to redemption prior to maturity by the City only
with the prior written consent of the Authority and on such terms as may be
required by the Authority.

This bond, including the interest hereon, is payable as a first budget
obligation from the general funds of the City, and the City is required, if
necessary, to levy ad valorem taxes on all taxable property in the City for the
payment thereof, subject to applicable constitutional, statutory and charter
tax rate limitations.

This bond is transferable only upon the registration books of the Issuer
by the registered owner of record in person, or by the registered owner’s
attorney duly authorized in writing, upon the surrender of this bond together
with a written instrument of transfer satisfactory to the Issuer duly executed
by the registered owner or the registered owner’s attorney duly authorized in
writing, and thereupon a new registered bond or bonds in the same aggregate
principal amount and of the same maturity shall be issued to the transferee in
exchange therefor as provided in the resolution authorizing this bond and upon
the payment of the charges, if any, therein prescribed.

It is hereby certified and recited that all acts, conditions and things
required by law to be done, precedent to and in the issuance of this bond and
the series of bonds of which this is one, exist and have been done and
performed in regular and due form and time as required by law, and that the
total indebtedness of the Issuer, including this bond and the series of bonds
of which this is one, does not exceed any constitutional, statutory or charter
debt limitation.

IN WITNESS WHEREOF, the City of Midland, Counties of Midland and Bay,
State of Michigan, by its City Council, has caused this Bond to be signed in
the name of the City by the facsimile signatures of its Mayor and Clerk and its
corporate seal or a facsimile thereof to be printed or impressed hereon, all as
of the Date of Original Issue.

CITY OF MIDLAND

Counties of
Midland and Bay

State of
Michigan

By____________________________

Its Mayor

(SEAL)

By____________________________

Its Clerk

SCHEDULE
A

Repayment of the Principal Amount shall be made
according to the following schedule until the full Principal Amount disbursed
to the Issuer is repaid, unless prepaid as provided in the bond.In event that the Principal Amount disbursed
to the City is less than $5,130,000 or in event of prepayment of the bond, the
Authority may prepare a new payment schedule which shall be approved by a
resolution of the City Council.

Principal

Installment

Due
on April 1

Amount
of

Principal

Installment

2003

$200,000

2004

205,000

2005

210,000

2006

215,000

2007

220,000

2008

230,000

2009

235,000

2010

240,000

2011

245,000

2012

250,000

2013

255,000

2014

265,000

2015

270,000

2016

275,000

2017

285,000

2018

290,000

2019

300,000

2020

305,000

2021

315,000

2022

320,000

6.The
estimated period of usefulness of the proposed Project is hereby declared to be
not less than thirty (30) years and its total cost is estimated to be not less
than Five Million One Hundred Thirty Thousand Dollars ($5,130,000).

7.The
Issuer shall not (i) invest, reinvest or accumulate any moneys deemed to
be proceeds of the bonds pursuant to Sections 103(a) and 148 of the
Internal Revenue Code of 1986, as amended, and the applicable regulations
thereunder, in such a manner as to cause the bonds to be “arbitrage bonds”
within the meaning of said Sections 103(a) and 148 and the applicable
regulations thereunder or (ii) take or refuse to take any lawful action
which would cause the interest on the bonds to be included in gross income for
federal income tax purposes.

8.The
proposed forms of Purchase Contract between the City and the MMBA and
Supplemental Agreement among the City, the MMBA and MDEQ are hereby approved,
and the Mayor and the Authorized Officers, or any of them, are authorized and
directed to execute such documents with such revisions permitted by law and not
materially adverse to the Issuer as may be necessary or advisable to accomplish
the sale of the Bonds to the MMBA as contemplated herein.

9.The Authorized Officers are hereby
jointly or severally authorized to take any actions necessary to comply with
requirements of the MMBA and MDEQ in connection with sale of the Bond to the
MMBA including, if required, the execution of a Revenue Sharing Pledge
Agreement.The Authorized Officers are
hereby jointly or severally authorized to execute and deliver such other
certificates, documents, instruments, applications and other papers as may be
required by the MMBA or MDEQ or as may be otherwise necessary or convenient to
effect the approval, sale and delivery of the Bonds.

10.All
resolutions and parts of resolutions insofar as they conflict with the
provisions of this resolution be and the same hereby are rescinded.(Motion adopted.)

Purchase – Administrative Cars and Light Duty Vehicles

The following resolution was
offered by Council Member Wazbinski and seconded by Council Member Currie:

WHEREAS, bids for automobiles and light duty vehicles are
solicited by the State of Michigan and Oakland County and the City of Midland
is authorized to make purchases from these programs; and

WHEREAS, sufficient funding for the purchase of small and
large size administrative cars and window vans is included in the 2001-02
Equipment Revolving Fund, General Fund and Water Fund budgets for Capital
Outlay, Vehicles; now therefore

RESOLVED, that the Purchasing
Agent is authorized to issue a purchase order to Oakland County’s selected
vendor, Red Holman Pontiac GMC of Westland, Michigan in the amount of
$49,192.00 for the purchase of four small-size administrative cars; to Oakland
County’s selected vendor, Whelan Chevrolet of Sterling Heights, Michigan in the
amount of $28,688.74 for the purchase of two full-size administrative cars; to
Oakland County’s selected vendor, Red Holman Pontiac GMC of Westland, Michigan
in the amount of $33,532.00 for the purchase of two 3/4 ton window vans with
full body glass, all in accordance with the Oakland County Cooperative Purchase
Program proposal and specifications.(Motion adopted.)

Zoning Petition No. 480

The following resolution was
offered by Council Member Wazbinski and seconded by Council Member Currie:

RESOLVED, that
notice is hereby given that a public hearing will be held by the City Council
on Monday, January 14, 2002, at 7:00 p.m. in the Council Chambers, City Hall,
for the purpose of considering the advisability of amending the Zoning Map of
Ordinance No. 727, the Zoning Ordinance of the City of Midland, as set forth in
the following proposed Ordinance, which is hereby introduced and given first
reading; and

RESOLVED
FURTHER, that the City Clerk is hereby directed to mail notice of said public
hearing to owners of real property originally notified of the Planning
Commission public hearing regarding the matter.

ORDINANCE NO. ______

AN ORDINANCE TO AMEND ORDINANCE NO. 727, BEING AN
ORDINANCE TO REGULATE AND RESTRICT THE LOCATION OF TRADES AND INDUSTRIES AND
THE LOCATION OF BUILDINGS DESIGNED FOR SPECIFIC USES, TO REGULATE AND LIMIT THE
HEIGHT AND BULK OF BUILDINGS HEREAFTER ERECTED OR ALTERED, TO REGULATE AND
DETERMINE THE AREA OF YARDS, COURTS, AND OTHER OPEN SPACES SURROUNDING
BUILDINGS, TO REGULATE AND LIMIT THE DENSITY OF POPULATION, AND FOR SAID
PURPOSES, TO DIVIDE THE CITY INTO DISTRICTS AND PRESCRIBE PENALTIES FOR THE
VIOLATION OF ITS PROVISIONS BY AMENDING THE ZONING MAP TO PROVIDE A BUSINESS
B-2 ZONING CLASSIFICATION WHERE RESIDENTIAL A-1 AND AGRICULTURAL ZONING
PRESENTLY EXIST.

The City of Midland Ordains:

Section 1.That
the Zoning Map of Ordinance No. 727, being the Zoning Ordinance of the City of
Midland, is hereby amended as follows:

That
property described as:Commencing at
the Northeast corner of Section 24, T14N, R1E, City of Midland, Midland County,
Michigan; thence 780 feet West along the North Section line to the point of
beginning; thence South 388 feet; thence West 160 feet; thence North 388 feet
to the North Section line; thence East 160 feet to the point of beginning; and

That
property described as: Beginning 660 feet West and 430 feet South of the
Northeast corner of Section 24, T14N, R1E, City of Midland, Midland County,
Michigan; thence South 113 feet; thence West 447 feet; thence North 113 feet;
thence East 447 to the point of beginning;

be, and the same is hereby changed to a
Business B-2 District.

Section 2.All
Ordinances or parts of Ordinances in conflict herewith are hereby repealed only
to the extent necessary to give this Ordinance full force and effect.